TAGORE ENGINEERING COLLEGE
Rathinamangalam, Chennai – 600127
Case Study-1
Date:
Course: Banking & Financial Services
Subject/ Code: BA4003
Semester/ Year: III/2023-24
S No Case Study B. T POs
1. A software company is considering a large acquisition. It has chosen the PO 1 &2
company it wishes to acquire and has contacted a number of investment banks
to obtain their thoughts on the transaction and how much they should pay.
Based on this presentation, it will choose an advisor and decide what to do.
Task: With a recommendation on whether to move forward with the
acquisition and if so, how much to pay for the target, suggest suitable
recommendations to the software company
Last Date for Submitting Case Study:
Solution for Case Study 1:
For the very first, you should consider these two questions to solve
this,
Should they purchase that target business?
What price should they want for the target business?
For an example :
Let’s assume that the comparable companies are trading at EBITDA
multiples that range from 4 to 8 times, with the median at 6 times
and the 75th percentile at 7 times, respectively. You choose the 25th
to 75th percentile range of 5x-7x and apply it to the target
company’s $10 million EBITDA since the target company’s profit
margins and revenue growth are comparable.
Therefore, the purchase price should range between $50 million and
$70 million.
If you have access to a computer, you can also design a DSF, but if
you are short of time, keep it straightforward and use multiples.
To answer the question “Should they buy?” take note of the
following:
Will the buyer be able to purchase the seller with enough cash,
debt, or stock issuances?
Will the vendor increase the buyer’s revenue and profit?
Will the buyer benefit from new consumers, new goods, new
markets, or other kinds of benefits as a result of the seller’s
acquisition?
Participants List
Team A
S.No Register
. Number Student Name
1 412722631002 AISHWARYA P
2 412722631003 ANGELIN BEAULA S
3 412722631005 ANUVARDHINI K
4 412722631008 ARUN U
5 412722631010 DEEPIKA R
6 412722631013 GOPI V
7 412722631015 HEMALATHA PT
8 412722631019 JAYALAKSHMI P
Team B
1 412722631021 JEEVANANDHAN E
2 412722631023 JOSE FLAVIN RAJ M
3 412722631027 KAMESHWARAN S
4 412722631029 LALITHA KUMARI
5 412722631030 LIVITHA
6 412722631032 MANIKANDAN P
7 412722631034 MOHAN PRATHAP S
8 412722631036 MONISHA K
TAGORE ENGINEERING COLLEGE
Rathinamangalam, Chennai – 600127
Case Study-2
Date:
Course: Banking & Financial Services
Subject/ Code: BA4003
Semester/ Year: III/2023-24
S No Case Study B. T POs
These days, the
2 PO 3&5
development of a
country is also
judged by its
system of
transferring
finance
from the sector
where it is in
surplus to the
sector where it is
needed the most.
To give
strength to the
economy, SEBI is
undertaking
measures to
develop the
capital market. In
addition to this,
there is another
market in which
unsecured and
short¬term debt
instruments
are actively traded
every day. These
markets together
help the savers
and investors in
directing the
available funds
into their most
productive
investment
opportunity
A publicly traded firm contacts you in the hope to raise money.
Analysts’ expectations were met by recent profits and the latest
financial report, but the company’s market values are lowest
throughout the year. The management of the company has developed a
project that it hopes would significantly boost EBIDTA and is looking
to raise funding for it. What should the business do to raise the
required capital?
Last Date for Submitting Case Study:
Solution for Case Study 1:
Allocative function.
2. Money market.
You must think about whether the organization should raise debt or stock.
Think about the market capitalization, share count, and share price:
How would the company be affected in this environment if it issued fresh shares?
In terms of dilution of ownership, would equity financing be an appropriate option?
How would the effect currently differ from what it would be if the share price were
back to normal?
Then examine the provided financial statements:
Would increasing debt be a better course of action if they are actually under
management’s predictions?
How much they could possibly raise?
What potential problems could a debt increase bring about?
How could the cost of interest be reduced?
Participants List
Team -A
1 412722631038 NEHRU V
2 412722631039 POORNIMA K
3 412722631040 PRASANTH P
4 412722631041 RAJESWARI P
5 412722631042 RAJ SURYA NARAYAN
6 412722631043 RAMOORTHI S
7 412722631044 RAMPRASAD S
8 412722631049 SHANMUGAPRIYA H
Team – B
1 412722631050 SHARMILA D
2 412722631051 SHINEY S
3 412722631052 SIVASAKTHI V
4 412722631055 SUDARKODI
5 412722631056 SUJITH KUMAR PM
6 412722631059 VIGNESH R
7 412722631060 VIJAY E
